Category: eiul

Your 401k won’t create wealth

If you are paying income tax on your cash flow that is too high in your opinion, then there are many strategies that could lighten that road not using an 401K investment strategy. The real issue is would you rather pay taxes on input or output? So you input $100,000 and have a $250,000 output….


Scala makes it easy to evaluate financial problems

Over the past couple of years, I have been innately fascinated by the emergence of scala. Discovering it’s incredible power of type inference, a very extensive collections API, pattern matching, and many other things have been very alluring. Recently, I had a question pop into my head regarding financial data. You see, I often hear…


Rebalancing my portfolio – CDs vs. EIULs

I recently wrote my first installment about rebalancing my portfolio. In it, I discussed some of the cons involved with investing in financial instruments that suffer losses. Essentially, if your account loses 20%, you must gain 25% to overcome that. The bigger the loss, the bigger gain you need just to get back to where…


Why do we use relative numbers for gains and losses?

I suppose you’re very familiar with hearing news like “The Dow is down 2.5% today,” or “The S&P is up 3%.” Mapping into basic mathematics, that would be -2.5% and +3%, relatively speaking. But why are these figures couched in relative numbers? In my previous article about rebalancing my portfolio, I talked about a scenario where…


Rebalancing my portfolio – Part 1

I’ve recently started a plan to rebalance my portfolio. The first leg is to stop investing in my 401k, and instead route that money into an overfunded Equity Indexed Life Insurance policy (EIUL). More on exactly what that is in a moment. Mutual funds won’t earn you 12% Over the past six months, I have…